Onvia recently conducted a survey of government procurement professionals from around the country to provide useful insights for both buyers and sellers in the business-to-government (B2G) marketplace.
Over 550 procurement staff from cities, counties, special districts, state agencies and school districts nationwide participated in the survey, revealing useful findings for creating effective B2G commerce.
One of the highlighted findings that the survey revealed was that procurement professionals and contractors both have positive outlooks regarding spending expectations for the coming year. Here’s more:
Government Buyers Report Spending Stability with Possible Growth of 2-3% in the Coming Year
Over the last 12 months, a majority (58%) of government buyers indicate remaining the same in their levels of procurement spending. Slightly more than one-third (34%) reported an increase.
Looking to the coming year, the expectation for change remains largely the same with most agencies expecting to spend at similar levels as the previous year, and 33% reporting a potential increase.
Onvia believes these answers suggest the potential for low-to-modest overall growth in spending of around 2-3% in the coming year.
Contractors Also See B2G Market Stability and Look Forward to More Government Sales Revenues
Earlier this year Onvia also conducted our 2nd annual survey of government contractors, and the responses that vendors gave regarding changes in sales to government were directionally similar to those of the agencies themselves.
Although the percentage of businesses who reported an expectation for increasing their government sales saw a slight decline, verbatim comments offered suggestions that on the whole, vendors in multiple industries see a relatively stable market with the opportunity for growth.
For example, a construction contractor responded with “[there’s] an increased number of projects available this season” and a financial services vendor shared that “local governments are financially healthier now.”
Here’s what government contractors had to say about recent and forecasted change in government sales:
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